Following the Ethereum Merge in September 2022, ETH has successfully transitioned from a Proof-of-Work network to a new Proof-of-Stake blockchain, now known as Ethereum 2.0.
This transition has allowed users to engage in Ethereum staking by locking up their ETH and becoming validators. Through the staking process, validators can help secure the network while earning rewards like newly minted ETH.
Read more about ETH 2.0 on the Bitpanda Academy!
Bitpanda's Ethereum staking update
We're excited to announce that Ethereum unstaking is now available on Bitpanda! With the introduction of Ethereum staking, the concept of an "unbonding" period becomes crucial. Let's break down what this means for you:
What is an “unbonding” period?
The un-bonding period is a set duration during which staked assets remain locked before they can be withdrawn. This mechanism ensures network stability and security. During the un-bonding period, staked assets are locked on the blockchain and cannot be used for transactions or earning rewards. The length of this period varies based on the PoS protocol and network design.
Why do unbonding periods exist in staking?
Unbonding periods are primarily designed to prevent abrupt, large-scale withdrawals, which could destabilize the network. They ensure that there's a predictable number of staked assets at any given time, facilitating smoother network operations and reducing the risk of potential attacks.
Can I unstake my Ethereum now?
Yes! With our new update, you can initiate the unstaking process. However, keep in mind that your ETH will be locked during the Ethereum network’s unbonding period. Once this period is over, you’ll be able to access and withdraw your ETH and associated rewards.
How do I unstake ETH?
To unstake your Ethereum, simply click the Unstake button on our web and app platforms.
Make sure your Bitpanda App is up to date with the latest version.
After an unbonding period of 2 days, you’ll be able to access your funds. We’ll notify you as soon as your funds are available. Please note that for now, Ethereum staking is still exclusively accessible via our web platform.
Can I deposit or withdraw staked ETH?
As mentioned, once you’ve initiated the unstaking process and the unbonding period concludes, you’ll be able to withdraw your staked ETH from Bitpanda. For those who’ve staked ETH outside Bitpanda, unfortunately, you cannot deposit those funds to Bitpanda.